Earlier this week Turner Parkinson hosted the Manchester hearing of The Ownership Effect Inquiry, an initiative of the Employee Ownership Association, which aim is to evidence the opportunities for employee ownership as both an economic and social enabler.
An independent panel of experts from business, finance and accounting reviewed evidence from management teams, industry experts and advisers who have experience in working with or for employee owned businesses. The findings from the inquiry will be published into a report focusing on the potential of employee ownership and its contribution to UK productivity growth and corporate behaviour. It is hoped this report will encourage government and key organisations to further support and develop what is already the fastest growing business structure in the UK.
Stephen Hadlow, who specialises in advising businesses looking at employee ownership, sat as an expert member of the panel at the hearing. He commented, “TP have been associated with the EOA for a number of years and specialise in advising businesses looking to transition to employee ownership, particularly as a succession strategy. We were thrilled to host the enquiry, which is key to fostering a better understanding of EO in the UK business community.”
As a succession strategy, EO allows business owners planning retirement to recognise the contribution made by the employees to the growth of the business. It also provides a tax advantageous structure which allows a seller to safeguard the core business culture and ethos of his business for the future. In many cases it provides the only viable exit route where there are barriers to a trade sale or MBO. Since 2013, TP have worked with over 15 businesses which have transitioned to employee ownership.
Read more on our involvement in Employee Ownership.